Super Micro Expands European Footprint to Meet Surging AI Infrastructure Demand

Super Micro plans to ramp up manufacturing in Europe to capitalize on AI demand

PARIS -- Super Micro plans to increase its investment in Europe, including ramping up manufacturing of its AI servers in the region, CEO Charles Liang told CNBC in an interview that aired on Wednesday. The company sells servers which are packed with Nvidia chips and are key for training and implementing huge AI models. It has manufacturing facilities in the Netherlands, but could expand to other places. "But because the demand in Europe is growing very fast, so I already decided, indeed, [there's] already a plan to invest more in Europe, including manufacturing," Liang told CNBC at the Raise Summit in Paris, France. "The demand is global, and the demand will continue to improve in [the] next many years," Liang added. Liang's comments come less than a month after Nvidia CEO Jensen Huang visited various parts of Europe, signing infrastructure deals and urging the region to ramp up its computing capacity.

Super Micro Accelerates European Footprint To Meet Exploding AI Needs - Super Micro Computer (NASDAQ:SMCI)

Super Micro Computer, Inc. SMCI, a leading AI server manufacturer, plans to increase its investment in Europe to meet surging demand for AI infrastructure. European Expansion Driven By Soaring AI Demand The company, which already operates manufacturing facilities in the Netherlands, is exploring additional European locations for expansion, CNBC reported on Wednesday, citing Super Micro's chief, Charles Liang. Liang attributes this accelerated investment to the rapid growth of European demand for AI solutions, a trend he expects to persist globally for many years. Also Read: Supermicro Raises $2 Billion Via Private Convertible Debt With 35% Conversion Premium This move follows Super Micro's June 11 expansion of Nvidia Corp. NVDA Blackwell AI server solutions into the European market, offering over 30 stack options for swift enterprise deployment. Domestic Production Also Scaling Up While focusing on Europe, Super Micro is also expanding its server production capacity in U.S. states like Mississippi and Texas. This domestic expansion is driven by the substantial investments from tech giants such as Microsoft Corp. MSFT and Amazon.com AMZN in building data centers for AI model deployment and training. The company also credited President Trump's localization initiative as a key factor driving its domestic expansion efforts. However, at that time, Liang also pointed to production difficulties in the U.S., citing elevated costs and the absence of a domestic semiconductor manufacturing ecosystem for over 30 years. He said the long gap left American infrastructure and labor unfamiliar with the demands of manufacturing roles. Stock Performance And Financial Headwinds Despite its strong performance year-to-date, with the stock up over 61% and significantly outperforming the S&P 500's 6% gain amidst the AI frenzy, Super Micro has faced recent headwinds. The stock plunged over 45% in the last 12 months, lagging the S&P 500's 11% gains. This decline was largely due to increased scrutiny over the company's internal financing controls, including the resignation of its independent auditor last October, which led to delayed financial filings. Ongoing tariff uncertainties have also impacted the company, resulting in postponed orders and a downward revision of its fiscal year revenue guidance. Super Micro now forecasts fiscal year revenue between $21.8 billion and $22.6 billion, a reduction from its earlier projection of $23.5 billion to $25 billion. Strong Growth Trajectory Maintained Nevertheless, Liang reiterated to CNBC on Wednesday that Super Micro maintains a robust growth trajectory by advancing its core technologies and broadening its business footprint. Analyst Outlook Analysts have set a consensus price forecast of $276.50 for Super Micro, based on ratings from 21 firms. Rosenblatt issued the highest forecast of $1,300 on August 7, 2024, while Wedbush set the lowest at $30 on May 7, 2025. Recent ratings average out to a price forecast of $42.67, suggesting a potential downside of 13.56% from the current level based on those forecasts. In May, Raymond James initiated coverage on Super Micro with an Outperform rating, highlighting its rapid revenue growth and leadership in AI-optimized infrastructure. The firm noted that AI platforms generate roughly 70% of Supermicro's revenue, establishing the company as a leading force among branded server vendors. Raymond James forecasted fiscal 2026 revenue of $29.8 billion and EPS of $3.03, emphasizing Supermicro's strategic position between traditional IT giants like Dell Technologies DELL and Hewlett-Packard Enterprise Co HPE and contract manufacturers such as Quanta. Price Action: SMCI shares were trading higher by 0.53% to $49.37 premarket at last check Wednesday. Read Next: Super Micro Faces Cautious Analyst View Amid Shifting Customer Demand And Declining Margins Image via Shutterstock SMCISuper Micro Computer Inc$49.500.79%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum37.80Growth86.56Quality94.79Value62.44Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$220.300.43%DELLDell Technologies Inc$124.700.25%HPEHewlett Packard Enterprise Co$20.950.62%MSFTMicrosoft Corp$497.500.18%NVDANVIDIA Corp$160.170.11%Market News and Data brought to you by Benzinga APIs